Question

5- 13- on s trea Essay: Danny Bone understands due diligence. He spent months investigating franchise options, before focusing specifically on Elevation Burger. Elevation Burger uses the slogan "Ingredients Matter", emphasizing its "organically raised, grass-fed, free-range cows and fresh-cut french fries cooked in heart healthy olive il. The company had been in business three years when it started franchising in 2008. Danny's brother Dennis brought franchising experience to the company from his years of managing their parents' Dunkin'Donuts franchise. Danny and Dennis began their franchise agreement with Elevation Burger in the Spring of 2008 intending to open their Austin, Texas location by the end of that year. LA What Danny hadn't counted on was the recession. Financing suddenly Tightened, and forecasts for restaurant sales were especially negative. Nevertheless, Danny and Dennis remained confident and were convinced that they understood how to run a cost-efficient operation. The brothers were committed to opening three Elevation Burger restaurants in the Austin area. Question1 Should the Bone brothers have anticipated the economic downturn as Part of their due diligence investigation? Question 2 What steps would you take to attract customers to your franchised restaurart when they are trying to save money? Question 3 What can the Elevation Burger franchisor do to help franchisees do to help The franchisees during a recession? 15 points

Answer 1

1) No one can anticipate that the economy is going to fall into recession, if one anticipated than the government would have taken preventive measures to forestall or prevent recession. Thus the Bone brothers could not have anticipated the economic downturn, however they could have estimated how it is going to function if there is a slowdown, they could have worked out in advance how to cut costs if they face various fluctuating business cycles.

2) I would offer discounts and emphasize that instead of spending money on calorie heavy items, one should spend it wisely on healthy options. Target the regular customers who see the store on daily basis, as food is necessity, they won't stop eating. Bring out easy meal options so that consumers would buy it on daily basis. Cut down unproductive staff and focus on digital marketing as it does not cost much and the target is huge. Do not compromise on quality and emphasize on how to increase quantity.

3) The franchisor could come out with official discounts and coupons so that all the franchisees would benefit from it. It can help them by conducting large scale marketing and making it compulsory for all of them to offer discounts. Offer discounts on raw materials or insist to the supplier to cut down some costs, which could be passed onto the customer eventually.